question archive Consider an economy with two consumers, Alice and Bob, and two goods

Consider an economy with two consumers, Alice and Bob, and two goods

Subject:EconomicsPrice:3.86 Bought12

Consider an economy with two consumers, Alice and Bob, and two goods. The total amount of good 1 is x1 = 50 and the total amount of good 2 is x2 = 75.

Alice has the utility function uA(xA1, xA2) = (xA1)1/4(xA2)1/2 and Bob’s utility function is uB(xB1, xB2) = (xB1)0.5(xB2)0.5

  1. Find the demand functions for Alice and Bob.

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